SHI to Pay $75m in Fine: US Justice Dept

South Korean shipbuilder Samsung Heavy Industries Co. (SHI) has
agreed to pay $75 million in penalties to avoid prosecution in
the United States over its scheme to pay millions of dollars in
bribes to Brazilian officials to win a contract.

"Samsung Heavy Industries paid millions of dollars to a Brazilian
intermediary, knowing that some of that money would be used to
bribe high-level executives at Petrobras and obtain a lucrative
shipbuilding contract," said Assistant Attorney General Brian A.
Benczkowski of the Justice Department's Criminal Division.
"Today's resolution is yet one more example of the Department's
continued commitment to root out bribery and to work with our
foreign counterparts to investigate schemes spanning multiple
international jurisdictions."

"SHI has reached an agreement with the U.S. Department of Justice
(DOJ) to settle an investigation into commission payments related
to the company's 2007 contract to build a drillship for a
subsidiary of Pride International Inc. (Pride)," said a press
release from the shipbuilder.

The contract was premised on Pride (now part of Valaris plc)
winning a contract to charter the drillship to a subsidiary of
Petroleo Brasileiro S.A (Petrobras). The investigation revealed
that part of the commission payment for the transaction was
improperly provided to Petrobras officials.

In recognition of SHI's cooperation and improved compliance
program, the DOJ has agreed to a three-year Deferred Prosecution
Agreement (DPA) with SHI. Upon successful completion, the DOJ
will seek to dismiss the deferred charge, which relates to a
drillship known as the "DS-5."

As part of the DPA, SHI will not be required to have a compliance
monitor. SHI will instead provide the DOJ with annual
compliance-program reports. SHI also will pay a total fine of
$75,481,600. Half of that amount will be paid within 10 business
days to the U.S. Government, and the other half will be paid
within the next 12 months either to the Brazilian Government if a
separate resolution is reached with Brazilian authorities or to
the U.S. Government if no such payment is made to Brazil during
that 12-month period.

"We deeply regret the company's involvement in these events,
which is contrary to our values and ethical standards," CEO Joon
Ou Nam said. "Many of the events described in our agreement
happened more than a decade ago, and the individuals involved are
no longer with the company. Over the past years, we have taken
extensive steps, at our own initiative, to strengthen our
anti-corruption compliance program to meet the highest standards
of compliance and ethics."